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March 14, 2025 - The David Knight Show
13:57
Banks Are About to Go the Way of the VIDEO STORE as Congress Pushes GENIUS Act Stablecoins
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Let's talk a little bit about what happened with gold.
Gold futures hit $3,000.
I looked at it last night.
Towards the end of the day, it just went straight up.
I didn't look to see what it was this morning.
Again, I'm not sitting there like Scrooge McDuck looking at ticker tapes.
Anyway, gold price at a new record high on safe haven bids.
Everybody is getting very concerned.
Because of the volatility that Trump is creating, as well as the tariffs, and also looking at inflation and debt and all the rest of this stuff.
All these things, all the fundamentals are there.
That's why I said, you know, when all of a sudden gold pulled back after Trump was elected and crypto surged forward, I had that Yukon Cornelius commercial.
I said, you know, this is a Trump euphoria.
And it's not going to be long-lived.
And it was a good time to buy then.
I think it went back to like $2,500 or something like that.
Gold price still will have plenty of potential after breaking through this $3,000 barrier.
The commodity team at a company, I don't know if I'm pronouncing this correctly, Mockery, led by Marcus Garvey.
Updated their 2025 gold price forecast yesterday, and they now see the precious metal pushing up to a high of $3,500 by the third quarter.
Well, if that were to happen, that would be in less than a year, going up about a sixth or 17%.
So they're not thinking that anything is going to get much better with the economy or more stable either.
Yesterday, it went up like 2.5%.
In just one day.
That's really unusual.
I mean, we're not talking about a cryptocurrency here.
We're talking about a commodity.
So they also see gold being driven by the deteriorating outlook of the U.S. government's growing debt.
The Congressional Budget Office projections for the budget deficit will deteriorate relative to the current law, with tariff revenues, savings achieved by Doge, supposedly, and potential cuts to Medicaid will be insufficient.
to fully offset the extension of Tax Cuts and Jobs Act, potentially adding one and a half percentage points to the deficit.
Gold prices are likely to remain historically elevated.
Garvey's team also expects Gold's rally to be supercharged if the Trump administration challenges the Federal Reserve's independence by pressuring it to cut rates.
He's all about cutting the rates to the extent that, you know, he Garvey is also bullish on silver.
The analysts there increased their forecast for silver to $33.50 by the third quarter, up from the previous forecast of $31 an ounce.
However, he still predicts an elevated gold-to-silver ratio.
of nearly 92 points, which is very unusual as well.
As I said yesterday, you know, these analysts who are looking at it said, you know, usually it's a fight between gold and the dollar, and one goes up, the other one goes down, but now they both have been going up.
But even with a strong dollar, gold was going up.
Same thing with bonds.
You know, the bond market was strong, but even with that, the dollar went up, and so everybody's scratching their heads and saying, what's going on?
Well, I think it's just this chaos.
Crypto traders, Though, are prepping to buy as tether activity hits a six-month high.
They know what's going on with the tariffs.
They're bringing the gold back with that.
You look at the stablecoin nonsense that's out there.
Yeah, don't tell me it's a stablecoin if it's tied to a fiat currency like the dollar.
But the game with all of that is this genius act.
And the fact that they are going to prop up their bond market using these stablecoins.
That's the game these crooks are running.
Just amazing.
Activity for Tether has hit a six-month high.
A lot of that's this Genius Act stuff.
The Senate Banking Committee has also now advanced the Genius Stablecoin bill.
And this is despite the banking industry picking...
Pushing back.
You know, yesterday when I read that to you, I said, look at this.
I got three different things that they're talking about here.
The very first thing that they talk about, well, we'll make sure that the banks are included.
And it's like, because the banks, if they know what's going on, they know that CBDC is going to be the end of them.
They know that the Genius Act will be the end of them.
And so the banking industry pushed back against this.
They were not fooled by that.
You know, what they said was, well, you know, with the proper...
Regulation and auditing and that type of thing.
We'll let Silicon Valley do this stuff, and we'll also let the banks still do it.
And they put the banks first.
They were number one.
The number two was the big tech.
And the banks said, no, no, no, no, we don't want that.
So the U.S. Senate Banking Committee still...
Elected to advance the Genius Act in an 18-6 vote.
It wasn't even close, folks.
This was as the banking industry itself was appealing to this Senate Banking Committee.
And this is the term that they used.
They said, stablecoins will disintermediate banks.
It's going to make them go away.
The analogy that I would use is that the banks are going to go the way of the video store after streaming came online.
Right?
And they understand that.
And they understand that if they put all this stuff, if you're going to stream your digital coins and everything online, the banks are going to go away.
They tried to use their influence.
Obviously, they don't have any left.
Even the Senate Banking Committee, 18 to 6, voted for this genius stablecoin thing.
It is a genius idea to make these people into even richer.
Maybe they'll become trillionaires.
Who knows?
According to an article from American Banker, the bill requires 60 votes to pass in the Senate, meaning that at least seven Democrats will have to vote with Republicans to push through the act.
They said this stablecoin bill breaks the status quo by greenlighting big tech companies and other commercial conglomerates to issue their own stablecoins.
But it looks like increasingly they're lining up to make that happen and to tokenize everything.
You know, part of what they want to do is in terms of monetizing and quote-unquote putting to work our natural resources that they now act as if It's their own little personal piggy bank.
One of the ways that they're going to put that out there is to tokenize it, to make a digital representation of these physical assets.
Shortly after the bill was introduced in the U.S. Senate, Federal Reserve Bank Governor Christopher Waller said that non-banks should be allowed to issue stablecoins.
You see, the idea...
That these people had that were attacking Thomas Massey.
These MAGA nuts who know nothing.
They said, well, you know, his end the Fed is a bad thing.
Because if we end the Fed, we're going to wind up with CBDC. He's like, what do you think the CB stands for in CBDC? Federal Reserve.
Do you think that the Federal Reserve has been cut out of this thing?
No, no, no.
They left themselves an end on all of this stuff as well.
No, the Federal Reserve is an evil institution.
It needs to be shut down.
Ron Paul was right about that.
Thomas Massey was right about that.
These people in the MAGA thing are absolutely clueless about everything.
And they don't understand how their hero, Donald Trump, is setting them up to be stabbed in the back.
How he's redesigning the financial system so that he and his crypto buddies can become trillionaires.
It's just disgusting to see this stuff rolling out.
Over-collateralized stablecoin issuers are collectively the 18th largest buyers of U.S. government debt in the world.
These stablecoins buy more U.S. treasury notes than Germany, South Korea, many other countries.
The 18th largest.
And it's going to become even larger.
And that's why this is happening.
The stablecoin thing, they will buy up the treasury debt as, you know, Ray Dalio was, I quoted him as saying, he's a hedge fund billionaire.
He said, the problem is the debt.
We're getting so much debt.
How are we going to service this debt?
And when it becomes such a large percentage of our GDP, people out there are not stupid.
They don't want to buy a debt that you're not going to be able to service.
So what do they do?
These guys like Lucky Lutnik and Scott Bessent, who are very smart and clever, they say, well, let's create this thing over here that is like a derivative, you know, like the securitization of the mortgages or something like that.
Let's create this artificial abstraction over here, and then we'll have it buy our treasury debt that nobody in their right mind wants to buy anyway.
Germany doesn't want it.
South Korea doesn't want it.
So we'll sell it to Stablecoin and Tether.
That is being run by Lucky Lutnik.
He's got a major interest in it.
He's the custodian for it.
He's got a major capital involvement in it and all the rest of the stuff.
The Genius Act signals an impending merger of the traditional financial system with stablecoins.
The Federal Reserve has run this Ponzi scheme longer than they typically are able to run these things.
And so they're going to have to redesign the financial system.
They're going to have to relabel it.
They're not going to call it now CBDC, but they'll have the same functions as CBDC, and they will merge this with the stablecoin.
It'll still give them the ability to see and control all of the money.
And it is just a stepping stone to a global financial currency.
This is why you want to get out of this stuff as much as you can.
The U.S. government can use stablecoins as a sponge to soak up inflation and to protect the dollar's status as the global reserve currency.
You see, they've been using these ETFs and these derivatives and securitized mortgages.
They've been using that to cover up bad assets like they did during the mortgage thing until, guess what?
Eventually, though, it blew up, didn't it?
So who knows if they're going to be successful in this.
But they always create...
These derivatives and stuff, for what purpose?
To manipulate things.
When we looked at the ETFs that were being created by BlackRock and others, the purpose of that was manipulation of Bitcoin.
Just like the purpose of ETFs for gold and silver, the purpose of that is to manipulate the value of the real thing.
They were manipulating the value of real estate with these derivative...
So all of these tokenized scams are about them creating some new instrument to manipulate the real thing that is out there.
And so now these guys are going to apply that to the federal debt.
I have no idea if they're going to be successful with that or not.
I know they're going to make a lot of money.
Are they going to destroy the country for the rest of us?
Look, This stuff is a gamble.
And it could easily blow up in their face like the mortgage stuff did.
Who knows?
Go to davidknight.gold.
It'll take you to Tony.
You can buy small or large amounts of gold or silver.
You can do it on a regular basis with Wolfpack.
I don't know anybody else that does that.
I've done business with Tony for a very long time.
If you want to get into Bitcoin, he doesn't do the other crypto stuff, but if you want to get into Bitcoin, he can get you there between Bitcoin and gold without fees.
So you can go from one way or the other to get into that.
But I look at gold.
Gold is not gambling.
I look at all of the stocks.
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